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German Ifo business climate falls to 6-month low of 109.7 in June

Published 06/24/2014, 04:03 AM
German Ifo business climate falls to 6-month low in June
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Investing.com - German business confidence deteriorated to the lowest level in six months in June, dampening optimism over the health of the euro zone’s largest economy, industry data showed on Tuesday.

In a report, the German research institute, Ifo said its Business Climate Index fell to a seasonally adjusted 109.7 this month, below forecasts for 110.2 and down from a reading of 110.4 in May.

The Current Assessment Index held steady at 114.8 in June, disappointing expectations for a reading of 115.0.

The Business Expectations Index, which measures attitudes toward business prospects over the next six months, declined to 104.8 this month from 106.2 in May, missing forecasts for 105.9.

The monthly index is based on a survey of around 7,000 German firms in the manufacturing, construction, wholesale and retail sectors.

Following the release of the data, the euro turned lower against the U.S. dollar, with EUR/USD shedding 0.04% to trade at 1.3598, compared to 1.3607 ahead of the data.

Meanwhile, European stock markets were mixed. Germany's DAX shed 0.1%, the Euro Stoxx 50 dipped 0.1%, France’s CAC 40 picked up 0.1%, while London’s FTSE 100 dipped 0.1%.

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